A firm depends on one supplier for a critical raw material. Which environmental risk is most directly shown?
Correct answer: A. Supplier dependence risk
- A. Supplier dependence risk
- B. Brand loyalty risk
- C. Product diversification risk
- D. Market segmentation risk
Explanation
Reliance on one critical supplier exposes the firm to shortages, price increases, and interruptions if that supplier fails. The other terms describe marketing or product choices rather than supply vulnerability.
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About The Business Environment
Business environment includes the internal factors and external forces that affect business decisions, performance and survival. It covers customers, competitors, suppliers, government, technology, economic conditions, society, law and ecology, including the distinction between the microenvironment and the wider PESTLE environment.
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